Three-Way Match is a process in procurement and accounts payable

A Three-Way Match is a process in procurement and accounts payable where SAP matches three documents before approving a payment: 1. Purchase Order (PO) – Created when goods/services are ordered. 2. Goods Receipt (GR) – Created when the goods/services are received. 3. Invoice (IR - Invoice Receipt) – Created when the vendor sends the invoice. This ensures that: The quantity and price in the invoice match the PO. The received quantity matches the ordered quantity before payment. Key SAP T-Codes for Three-Way Match 1. ME21N – Create Purchase Order 2. ME23N – Display Purchase Order 3. MIGO – Goods Receipt (Records receipt of goods) 4. MB51 – Material Document List (Check GR details) 5. MIRO – Invoice Receipt (Enter vendor invoice) 6. MIR4 – Display Invoice Document 7. FBL1N – Vendor Line Item Display (Check open invoices) How Three-Way Matching Works in SAP 1. Create PO (ME21N) – A Purchase Order is created with details like quantity and price. 2. Goods Receipt (MIGO) – When goods/services arrive, a GR document is created. 3. Invoice Receipt (MIRO) – Vendor submits an invoice, which is entered in SAP. 4. SAP automatically matches the PO, GR, and invoice: If everything matches, the invoice is posted for payment. If there is a mismatch, SAP flags the invoice for review.